Quote:
Originally Posted by DJ's left nut
Just do the math and it's obscene.
Let's say you're looking at a nice 2nd home - nothing extravagant but certainly a fairly nice place. You have a growing family or something so you're looking to get a little bigger than your 'starter' house. That's gonna be probably $500K for maybe 3,500-4,000 sq ft if you're in a neighborhood you want to be in.
And lets say you're even able to put 20% down because of equity in your first home.
A 400K loan at my 2.25% is gonna cost me about $150K in interest over 30 years. The 'cost' of the house is gonna be $650K when factoring in your down payment.
If you make it 7% the interest you'll pay on that home almost quadruples on a 30 year note. Your total interest paid will be $560K. That house suddenly costs you 1.05 million.
And what these assessors are trying to do is use home values and sales from that late COVID era when interest was still low but supply was ass (and the money printers were going brrrrrrrr) so home prices were skyrocketing.
When you start to mess with the math here, 'upgrading' homes is almost a complete non-starter unless you can somehow pay cash for it.
I cannot for the life of me understand how people bought houses in the 80s when rates were briefly at 20% before settling into the 'manageable' low teens.
But at the risk of this turning to politics, I still think this NEEDED to be done. Home prices had gotten exorbitant precisely because free money led to a runaway market. My folks built their house in the early 90s when the market was still feeling the pinch from the 80s rates and hadn't fully absorbed those early 90s drops into the 5-6% range that we're climbing back into now. And man, comparing what they paid to what we would for a home like that now - it's night and day. At a point, the market needed a correction.
But you can't go rat-****ing people on their property taxes in the middle of it...
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this is nationwide. I couldn’t buy my house today. Last time I looked it had tripled what we paid for it 10 years ago. But, now I have to deal with property taxes going up but not because of my homes increased value but across the board property tax increases.
Flood insurance(really hurricane) went up $2-$3K for most. Now, we can move from being on the water so no one needs to shed a tear for us ****ers.
But, just regular house insurance went up $1500 too. I’d bet we can find a poster on here from every state with a similar story.
I refinanced a couple of years ago. Got a 30 year/2.3% rate. Was going to put $500 a month back into my pocket. Until they raised the Insurance and taxes. Totally wiped it out.